SentinelOne's Q2 Earnings Highlight Strong AI-Driven Cybersecurity Demand and Growth

SentinelOne Earnings Point to Strong AI-Driven Cybersecurity Demand

Colin is an Associate Editor focused on tech and financial news. He has more than three years of experience editing, proofreading, and fact-checking content on current financial events and politics. He received his M.A. in journalism from The New School and his B.A. in history and political science from McGill University. Shares of SentinelOne (S) rose nearly 6% Friday after the company became the latest cybersecurity firm whose results topped estimates as AI threats proliferate. SentinelOne on Thursday evening reported fiscal 2026 second-quarter annualized recurring revenue grew 24% year-over-year to surpass $1 billion for the first time, and raised its full-year revenue guidance. Jefferies analysts in a note on Friday attributed the strong results to "improved execution" and a broadening product portfolio, which will grow later this year when the company completes its acquisition of Prompt Security, "a pioneer in securing AI in runtime, preventing AI-related data leakage and protecting intelligent agents." SentinelOne is the latest cybersecurity company to report strong demand amid a proliferation of AI-related threats. Palo Alto Networks (PANW) earlier this month topped sales and earnings estimates and issued stronger-than-expected guidance, as did Okta (OKTA). "As GenAI and agentic AI fundamentally reshape how businesses operate, new risks are emerging around visibility, compliance, data leakage and control," SentinelOne CEO Tomer Weingarten said on the company's earnings call, according to an AlphaSense transcript. Morgan Stanley analysts in a note last month identified three distinct "core secular security drivers" sustaining strong demand for cybersecurity products: "growth of the attack surface area" with the expansion of cloud computing and AI; "severity of the threat environment," referring to the increasing sophistication of AI-supported attacks; and "expanding regulatory/compliance requirements" stemming from the adoption of generative AI. For that reason, cybersecurity remains a top priority for IT executives. According to Morgan Stanley's second-quarter Chief Information Officer survey, companies expect to increase cybersecurity software by 9.8% this year, up from 9.2% in the fourth quarter of 2024. That far outpaces plans for overall software spending, which respondents recently forecast would grow by 3.6%, down from 3.8% in the 2025 first quarter.

SentinelOne Q2 Earnings Beat As ARR Tops $1B, AI-Driven Growth Boosts Outlook - SentinelOne (NYSE:S)

SentinelOne Inc S reported second-quarter financial results Thursday after the close. Here's a look at the key details from the print. S shares are climbing with conviction after-hours. Get the inside scoop here. Q2 Highlights: SentinelOne reported second-quarter revenue of $242.18 million, beating the consensus estimate of $242.17 million, according to Benzinga Pro. The cybersecurity company reported second-quarter adjusted earnings of four cents per share, beating analyst estimates of three cents per share. Total revenue increased 22% year-over-year. Annualized recurring revenue (ARR) increased 24% year-over-year to $1 billion as of July 31, and customers with ARR of $100,000 or more grew 23% to 1,513 in the quarter. The company ended the period with $1.2 billion in cash, cash equivalents and investments. "We surpassed $1 billion in ARR and delivered record net new ARR, continuing to deliver robust growth and platform adoption across AI, data, cloud, and endpoint," said Tomer Weingarten, CEO of SentinelOne. "Our second-quarter results highlight the momentum of our AI-powered platform, strengthening competitive position, and growing product differentiation." What's Next: SentinelOne expects third-quarter revenue of approximately $256 million versus estimates of $254.38 million. The company also raised its full-year 2026 revenue guidance from a range of $996 million to $1.001 billion to a new range of $998 million to $1.002 billion versus estimates of $998.55 million. SentinelOne's management team is currently discussing the quarter on an earnings call with investors and analysts that started at 4:30 p.m. ET. S Price Action: SentinelOne shares were up 8.69% in after-hours, trading at $19.14 at the time of publication on Thursday, according to Benzinga Pro. Read Next: CrowdStrike Analysts Emphasize Long-Term Strength Of Cybersecurity Platform Image: Tada Images/Shutterstock.com SSentinelOne Inc$19.0411.0%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum12.91Growth20.38QualityN/AValue53.17Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Why Is SentinelOne Stock Climbing Friday? - SentinelOne (NYSE:S)

SentinelOne Inc. S posted second-quarter fiscal 2026 results that modestly outpaced expectations, prompting several Wall Street analysts to reiterate bullish views and lift price forecasts. Revenue came in at $242.2 million, up 22% year-over-year and in line with consensus estimates, while non-GAAP EPS of 4 cents beat forecasts of 3 cents. Annual recurring revenue (ARR) grew 24% to $1 billion for the second straight quarter, and large customers spending more than $100,000 annually increased 23% to 1,513. SentinelOne ended the quarter with $1.2 billion in cash and investments. Management guided third-quarter revenue of $256 million and raised full-year revenue expectations to $998 million-$1.002 billion, up slightly from prior forecasts and closely aligned with analyst projections. Related: SentinelOne Q2 Earnings: Revenue, EPS Beat Estimates, ARR Crosses $1 Billion, Company Raises Outlook On AI Momentum WestPark Capital analyst Casey Ryan reaffirmed a Buy rating and $25 price forecast, emphasizing SentinelOne's ability to combine steady top-line growth with improving profitability. He highlighted gross margins rising to 73.3%, keeping the company on track toward its 75-80% long-term forecast. Ryan praised the AI-powered Singularity platform as a differentiator against rising cyber threats and staffing shortages and added that SentinelOne's consistent execution and balance sheet strength make it a potential takeover candidate for either strategic or private equity buyers. Needham & Company analyst Mike Cikos reiterated a Buy and raised his forecast to $23, describing SentinelOne's quarter as a turning point in momentum. He highlighted record net-new ARR growth of 90% sequentially, well above expectations, fueled by strength across new and existing customers. Cikos noted Purple AI's attach rates above 30% and triple-digit bookings growth as evidence of accelerating adoption, while the Data segment continues to scale after surpassing $100 million in ARR last quarter. He also pointed to the early success of SentinelOne Flex, the company's new licensing model, which has already landed an eight-figure deal. While the $180 million acquisition of Prompt Security creates a short-term margin headwind (~80 bps), Cikos sees it strategically enhancing the company's generative AI security portfolio. Other analysts also raised their forecasts following the print. UBS' Roger Boyd maintained a Neutral rating and lifted his price forecast from $19 to $21. Wells Fargo's Andrew Nowinski reiterated an Equal-Weight rating while moving his forecast from $18 to $19. Barclays' Saket Kalia kept an Equal-Weight stance and raised his forecast from $19 to $21. Baird's Shrenik Kothari remained more constructive with an Outperform rating and a higher forecast of $23, up from $21. Overall, analysts see SentinelOne's expanding platform, AI-driven capabilities, and execution on both growth and margin goals as positioning the company well for long-term gains. While management's modest guidance bump reflects caution around the timing of large deals, the Street generally views the stock as attractively valued, with multiple product levers, ongoing platform adoption, and M&A potential supporting upside. Price Action: S shares are trading higher by 5.37% to $18.56 at last check Friday. Read Next: Nvidia Joins Investment Of Nuclear Fusion Startup Backed By Bill Gates, Google Photo by Tada Images via Shutterstock SSentinelOne Inc$18.565.39%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum13.94Growth20.38QualityN/AValue52.76Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

SentinelOne ARR Tops 1 Billion in Q2 | The Motley Fool

SentinelOne (S 2.68%) reported fiscal second quarter ended July 31, 2025, results on August 28, 2025, delivering 24% year-over-year (YoY) annual recurring revenue (ARR) growth to surpass $1 billion (non-GAAP), 22% YoY revenue growth to $242 million, with an industry-leading 79% gross margin. Management raised full-year revenue guidance for the fiscal year ending Jan. 31, 2026, to $998 million to $1.002 billion (non-GAAP) and highlighted the approximately $180 million acquisition of Prompt Security, expected to close in the fiscal third quarter ending Oct. 31, 2025, to expand into GenAI security and data loss prevention (DLP). Net new ARR (non-GAAP) exceeded internal expectations by approximately 40%, with both new logo acquisition and existing customer expansion each contributing roughly half of growth (non-GAAP), alongside a 23% year-over-year increase in customers with ARR above $100,000 (non-GAAP). Non-endpoint products such as Purple AI, AI SIEM (Security Information and Event Management), and data solutions represented about 50% of total quarterly bookings (non-GAAP). This indicates successful platform diversification. "Our total ARR grew 24% and crossed $1 billion, a significant milestone in our growth journey. We also achieved a record second quarter net new ARR reflecting positive year-over-year growth of over 20% and a strong uptick in new business generation. That's a clear reflection of our team's execution, business momentum, and rising demand for SentinelOne's AI-powered cybersecurity. Our fiscal second quarter performance was broad-based, with strong contributions from new customer additions, expansion with existing accounts, and increased adoption of our AI and data solutions. These results underscore our stronger competitive position and growing product differentiation. We continue to maintain a top-tier growth profile while driving operating leverage. Following a strong fiscal second quarter outperformance, we're raising our full-year revenue outlook while remaining prudent in our assumptions for the second half given a dynamic macro backdrop." -- Tomer Weingarten, CEO This momentum signals a tangible business mix shift and validates SentinelOne's strategy to drive high-margin, multiproduct expansion within both new and existing enterprise accounts (non-GAAP). This supports increased operating leverage and durability of growth. Launched in the fiscal second quarter ended July 31, 2025, SentinelOne Flex yielded its first eight-figure total contract value (TCV) platform deal, enabling customers to dynamically access the full suite of nearly 30 modular solutions, with early adoption by mid- and large-sized organizations looking to scale security investment efficiently. Flex is expected to support deal size growth, increase average contract duration, and streamline procurement for renewals and new logos, with Prompt Security being added to the available product set. "We've also launched SentinelOne Flex, a major step forward in how customers adopt the Singularity platform. It's a unified flexible licensing model that gives organizations the agility to manage entitlements, seamlessly deploy new platform capabilities, and drive greater return on their security investments. Flex provides customers with full access to the entire Singularity platform, enhancing our opportunity to expand our footprint across customer environments. The reception for Flex is outstanding, with an 8-figure total deal value validating the model and many customers and prospects choosing the new structure. It enables our team to land bigger deals with higher efficiency and expand with greater velocity." -- Tomer Weingarten, CEO This augments the long-term value per customer and enhances sales pipeline visibility. The $180 million acquisition of Prompt Security, expected to close in the fiscal third quarter ending Oct. 31, 2025, provides SentinelOne with proprietary capabilities for runtime GenAI governance, endpoint-based data protection, and DLP, directly addressing urgent enterprise risks around uncontrolled AI usage and shadow IT. Prompt's technology integrates natively into the Singularity platform, targeting both endpoint (SOC and DLP teams) and cloud security buyers and positions SentinelOne as an early mover in GenAI security as adoption accelerates across industries. "To extend our innovation lead and further differentiate our AI-powered platform, we also announced the acquisition of Prompt Security, a pioneer in securing generative AI at runtime, preventing GenAI-related data leakage, and delivering security for AI agents. GenAI adoption is exploding across all industries, which brings a new class of risks and exposure. As GenAI and agentic AI fundamentally reshape how businesses operate, new risks are emerging around visibility, compliance, data leakage, and control. Prompt Security enhances the Singularity platform with the ability to monitor, govern, and control GenAI usage in the enterprise. These are critical capabilities that every CIO and CISO is now prioritizing." -- Tomer Weingarten, CEO This move opens an incremental total addressable market (TAM), fortifies SentinelOne's claim to AI-native security leadership, and creates the foundation for upside as GenAI and DLP compliance requirements proliferate in the enterprise segment. Management guided fiscal third quarter ending Oct. 31, 2025, revenue (non-GAAP) to $256 million (22% YoY growth), with full-year revenue (non-GAAP, fiscal year ending Jan. 31, 2026) now expected in the $998 million to $1.002 billion range (22% YoY), gross margin of 78.5% to 79% for the full year, and full-year operating margin (non-GAAP) of approximately 3%, including an 80 basis point dilution from the Prompt Security acquisition. Management maintains expectations for positive full-year free cash flow and operating profit, and expects the Prompt acquisition to close in the fiscal third quarter ending Oct. 31, 2025, with minimal fiscal year ending Jan. 31, 2026, revenue impact but a strategic position for long-term growth in the GenAI security market.

SentinelOne Posts 22% Revenue Jump in Q2 | The Motley Fool

SentinelOne (S 2.77%), a cybersecurity company specializing in artificial intelligence-powered security software, announced its results for the second quarter of fiscal 2026 on August 28, 2025. The most notable news from the release was the company reaching $1.0 billion in annualized recurring revenue (ARR), with quarterly revenue climbing to $242.2 million (GAAP)-- a 22% year-over-year increase, and matched internal guidance. Non-GAAP earnings per share rose to $0.04, and the firm achieved a positive non-GAAP operating margin. However, free cash flow remained negative. Management raised its full-year revenue outlook. Overall, the quarter saw continued momentum, but with signs of moderating top-line growth. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2026 earnings report. SentinelOne delivers cybersecurity software that uses artificial intelligence to identify and respond to threats in real time. Its core product is the Singularity Platform, an AI-driven suite that autonomously protects cloud, endpoint, and data environments. The platform relies on several AI models for threat detection and rapid incident response without the need for human intervention. The company's recent strategy has emphasized broadening platform functionality, expanding into international markets, and deepening penetration among existing customers. Key success factors include AI differentiation, expanding recurring revenue through large enterprise clients, and maintaining operational efficiency as it grows. With cybersecurity threats becoming more complex, market expansion and product integration remain central to its ongoing strategy. SentinelOne's revenue (GAAP) increased 22% to $242.2 million, meeting internal guidance. This reflects not only ongoing demand for its AI-driven cybersecurity platform but also the company's ability to attract larger customers. Annualized recurring revenue, a measure of predictable, subscription-based sales, surpassed $1.0 billion for the first time. The company also reported that customers generating $100,000 or more in annual recurring revenue grew 23% to 1,513. The company's non-GAAP operating margin swung from negative to positive, improving from (3%) in the prior year to 2%. Non-GAAP earnings per share climbed to $0.04. On the other hand, free cash flow margin held steady at (3%), as cash generation remained a challenge. GAAP profitability remains elusive, as the company continues to book sizable GAAP losses after accounting for non-cash expenses such as stock-based compensation. Operating cash flow, while flat for the quarter, shows some improvement on a trailing twelve-month basis. Platform adoption remains a business focus, with ongoing investment in AI -- particularly in its AI-powered cybersecurity platform and increasing automation across endpoint, cloud, and data security modules. The release did not detail new product launches or major partnerships this quarter, and cited "robust growth and platform adoption". Competition and lengthening sales cycles were once again mentioned as risks, though no new adverse developments were highlighted. Share repurchases continued as part of the company's buyback program. Stock-based compensation (GAAP) rose year over year. SentinelOne positions itself around AI-driven security, automating the detection and response to cyber threats across client devices, cloud services, and data storage. Its Singularity Platform, encompassing cloud security, data protection, and endpoint defense solutions, aims to offer a unified approach to cybersecurity. The firm's focus on AI -- citing "relentless focus on innovations unifying AI, data, and security" -- aligns with broader enterprise trends requiring rapid response to evolving digital threats. Customer metrics showed solid progress this period, with the number of clients spending over $100,000 in annual recurring revenue rising to 1,513. For the third quarter, management forecasts revenue of $256 million. The company raised its full-year revenue outlook to between $998 million and $1.002 billion. Expected non-GAAP gross margin is guided to 78.5% to 79%, with a projected 4% non-GAAP operating margin for the third quarter. Management reaffirmed its commitment to achieving full-year operating profitability and positive free cash flow. While strong top-line growth and customer traction continued, growth rates have moderated compared to earlier years. Investors will likely focus in future quarters on the sustainability of large customer additions, whether improvements in profitability can be achieved alongside growth, and if free cash flow can turn consistently positive. Persistent GAAP losses and high stock-based compensation remain issues to watch as the company matures and strives for long-term profitability.

1 No-Brainer Artificial Intelligence (AI) Stock Down 75% to Buy on the Dip, According to Wall Street | The Motley Fool

SentinelOne is growing faster than its peers, yet it's one of the cheapest stocks in the cybersecurity industry. SentinelOne (S 7.10%) is a leading provider of enterprise cybersecurity software. Its Singularity platform protects cloud networks, employee identities, endpoints (computers and devices), and more. It's powered by artificial intelligence (AI), so it autonomously uncovers threats and thwarts attacks, reducing the workload on human cybersecurity managers. The company released a positive set of financial results for its fiscal 2026 second quarter (ended July 31) on Aug. 28, which sent its stock soaring by as much as 9% in after-hours trading. However, it remains 75% below its 2021 record high, when a frenzy in the tech sector drove its valuation to an unsustainable level. But here's the good news: Wall Street thinks SentinelOne's recovery will continue, because the majority of the analysts tracked by The Wall Street Journal have given it a buy rating, and none of them recommend selling. Here's why the bullish consensus might be justified. AI is at the heart of the Singularity platform because SentinelOne believes machines can respond to cyberthreats much faster than humans can. AI stands ready to act at any given moment -- it doesn't need sleep or days off. However, in cases where human intervention is required, Singularity's Storyline feature generates detailed incident summaries to help managers find the root cause of the incident, saving hours of manual investigations. Then there is the one-click remediation feature, which allows managers to instantly roll networks back to their pre-breach state in the event of a successful attack, which reduces downtime. SentinelOne also developed an AI-powered assistant called Purple AI Athena, which uses advanced reasoning to deliver humanlike capabilities in identifying, analyzing, and remediating threats. Over time, this means even fewer incidents will require human intervention. Singularity outperformed most of its peers in MITRE's 2024 Evaluations, which measured the effectiveness of cybersecurity platforms. Singularity delivered perfect accuracy, the highest possible detection rate with zero delays, and 88% less noise than its peers, which means it handled more cyber incidents autonomously relative to competing products from CrowdStrike and Palo Alto Networks. SentinelOne generated $242.2 million in revenue during the fiscal 2026 second quarter, which was up 22% year over year, and slightly above management's guidance of $242 million. The company's annual recurring revenue (ARR) grew by 24% and topped the $1 billion milestone for the first time ever. On the back of the strong quarterly result, management increased its full-year revenue guidance for fiscal 2026 slightly, taking it from $998.5 million to $1 billion at the midpoint of the forecast range. SentinelOne is much smaller than its main competitors in the AI-powered cybersecurity space, but based on its second-quarter performance, it's growing more quickly than Palo Alto Networks and CrowdStrike, which delivered revenue increases of 16% and 21%, respectively, during their most recent quarters. This could suggest SentinelOne is gradually taking market share. The company also made progress on the bottom line during the second quarter. Although it lost $72 million on the basis of generally accepted accounting principles (GAAP), which was slightly worse than its year-ago result, its adjusted (non-GAAP) profit surged by 277% to $13.2 million. The latter excludes one-off and noncash expenses, so it can be a more useful indicator of how much money SentinelOne's business is actually generating. The Wall Street Journal tracks 39 analysts who cover SentinelOne stock, and 21 have given it a buy rating. Three others are in the overweight (bullish) camp, and the remaining 15 recommend holding. None of the analysts recommend selling. They have an average price target of $23.20, which implies a potential upside of 25% over the next 12 to 18 months. But the Street-high target is $30, which suggests the stock could soar by as much as 62%. When the stock peaked in 2021, its price-to-sales ratio (P/S) was over 120, which was unsustainable. But the 75% decline in the stock since then, combined with the company's consistent revenue growth, has pushed its P/S down to a far more reasonable 6.8. SentinelOne values its total addressable market at over $100 billion, and since the company only just crossed $1 billion in ARR, it has a very long runway for growth. As a result, I think Wall Street's bullish consensus is justified, so this stock could be a great long-term addition to a diversified portfolio.

SentinelOne raises annual revenue forecast on strong cybersecurity demand

SentinelOne, Inc. is an artificial intelligence (AI)-powered cybersecurity provider. The Company’s Singularity Platform detects, prevents, and responds to cyberattacks at machine speed, empowering organizations to secure endpoints, cloud workloads, containers, identities, and mobile and network-connected devices. The Company’s Singularity platform ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of ever-expanding disparate external and internal sources in real time. Its distributed AI models run both locally on every endpoint and every cloud workload, as well as on its cloud platform. The Company’s offering also includes PingSafe, a cloud native application protection platform (CNAPP) to bolster its cloud security product suite. By adding PingSafe’s CNAPP to its Cloud Workload Security (CWS), it provides enterprises with a comprehensive cloud security coverage that drives security, improved posture, and autonomous protection.